AustralianSuper Pty Ltd Sells 87,101 Shares of Wabtec $WAB

Key Points

• AustralianSuper Pty Ltd reduced its Wabtec stake by 8.8% in the fourth quarter, selling 87,101 shares and leaving it with 908,291 shares valued at about $193.9 million.
• Wabtec reported better-than-expected EPS of $2.71 for the latest quarter, though revenue of $2.95 billion came in below analyst estimates; revenue still rose 13% year over year.
• The company announced a quarterly dividend of $0.31 per share and has an active $1.2 billion share repurchase plan, while analysts remain mostly constructive with a consensus “Moderate Buy” rating and average target price of $289.82.

AustralianSuper Pty Ltd cut its holdings in shares of Wabtec (NYSE:WAB - Free Report) by 8.8% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 908,291 shares of the transportation company's stock after selling 87,101 shares during the quarter. Wabtec accounts for approximately 0.9% of AustralianSuper Pty Ltd's holdings, making the stock its 22nd biggest holding. AustralianSuper Pty Ltd owned approximately 0.53% of Wabtec worth $193,875,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in WAB. Wellington Management Group LLP increased its stake in Wabtec by 3.6% in the 3rd quarter. Wellington Management Group LLP now owns 3,304,183 shares of the transportation company's stock worth $662,390,000 after purchasing an additional 116,329 shares during the period. Nordea Investment Management AB increased its position in shares of Wabtec by 55.5% in the fourth quarter. Nordea Investment Management AB now owns 3,069,340 shares of the transportation company's stock valued at $659,939,000 after acquiring an additional 1,095,083 shares during the period. Boston Partners grew its stake in shares of Wabtec by 1.9% in the third quarter. Boston Partners now owns 2,304,832 shares of the transportation company's stock worth $462,057,000 after purchasing an additional 43,376 shares during the last quarter. Farallon Capital Management LLC lifted its stake in Wabtec by 68.6% in the third quarter. Farallon Capital Management LLC now owns 2,205,098 shares of the transportation company's stock worth $442,056,000 after acquiring an additional 896,900 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in Wabtec by 1.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,718,241 shares of the transportation company's stock valued at $344,405,000 after acquiring an additional 19,952 shares in the last quarter. 91.69% of the stock is owned by institutional investors.

Wabtec Trading Up 1.6%

NYSE:WAB opened at $269.08 on Friday. Wabtec has a one year low of $184.26 and a one year high of $275.84. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.02 and a quick ratio of 0.54. The firm has a market capitalization of $45.66 billion, a price-to-earnings ratio of 38.06, a price-to-earnings-growth ratio of 1.89 and a beta of 0.97. The business has a fifty day moving average price of $255.77 and a 200-day moving average price of $235.22.

Wabtec (NYSE:WAB - Get Free Report) last released its earnings results on Wednesday, April 22nd. The transportation company reported $2.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.62 by $0.09. The company had revenue of $2.95 billion during the quarter, compared to analyst estimates of $3.08 billion. Wabtec had a net margin of 10.52% and a return on equity of 14.52%. The firm's quarterly revenue was up 13.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.28 EPS. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. Sell-side analysts forecast that Wabtec will post 10.61 EPS for the current year.

Wabtec Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Friday, May 22nd will be given a dividend of $0.31 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.24 annualized dividend and a dividend yield of 0.5%. Wabtec's dividend payout ratio (DPR) is presently 17.54%.

Wabtec announced that its Board of Directors has authorized a share repurchase plan on Wednesday, February 11th that authorizes the company to buyback $1.20 billion in shares. This buyback authorization authorizes the transportation company to reacquire up to 2.9% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Wolfe Research reissued an "outperform" rating and set a $303.00 price objective on shares of Wabtec in a research note on Thursday, April 23rd. Morgan Stanley reiterated an "overweight" rating and set a $318.00 target price on shares of Wabtec in a report on Monday, April 27th. JPMorgan Chase & Co. dropped their price target on Wabtec from $290.00 to $280.00 and set a "neutral" rating on the stock in a research report on Friday, April 10th. Weiss Ratings restated a "buy (b)" rating on shares of Wabtec in a research note on Monday, April 20th. Finally, Wall Street Zen cut Wabtec from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Ten equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $289.82.

Insiders Place Their Bets

In other news, CEO Rafael Santana sold 1,163 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $263.77, for a total transaction of $306,764.51. Following the completion of the transaction, the chief executive officer owned 127,566 shares in the company, valued at $33,648,083.82. This trade represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John A. Olin sold 11,000 shares of Wabtec stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $263.30, for a total value of $2,896,300.00. Following the completion of the sale, the chief financial officer directly owned 60,487 shares in the company, valued at approximately $15,926,227.10. The trade was a 15.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 91,729 shares of company stock worth $24,387,500. 0.57% of the stock is owned by corporate insiders.

Wabtec Company Profile

Wabtec Corporation (Westinghouse Air Brake Technologies Corporation) is a global provider of equipment, systems and services for the rail industry. The company supplies products and solutions to freight railroads, transit agencies and other industrial operators, focusing on technologies that improve the performance, safety and efficiency of locomotives and rail networks. Wabtec's business spans new equipment manufacturing, aftermarket parts and services, and digital and control systems for rail operations.

Product and service offerings include locomotive systems and components, braking and air systems, propulsion and traction equipment, signaling and control technologies, and a range of aftermarket services such as maintenance, remanufacturing, parts distribution and fleet modernization.

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